For example some credit cards have ridiculous monthly interest like 29.9%

While offering a low 0.9% APR.

Please explain.

  • CircuitGuy@lemmy.world
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    18 days ago

    For example some credit cards have ridiculous ~~monthly ~~annual interest like 29.9% While offering a low 0.9% APR.

    Some percentage of people will have some event in their life happen that causes them to keep a balance beyond the 5 months (March 2026), and they’ll make 29.9% interest from those customers. It’s a sketchy business model. Most customers will pay it off before the teaser rate ends, but it’s not worth the hassle unless you had some reason to borrow to want borrow a small amount of money and pay it off in 5 months before you heard about this offer.